my nickel and dime thoughts. in denver. remember 8:00 p.m. meese -- 8:00 p.m. eastern although a permit night. what about that candidates who are dismissing the debt? antonio villaraigosa, and how about we talk to thehat whae leaders, movers, and you guys shakers? a best. gerri: hello, everybody, i am gerri willis for the candidates are prepping for the first debate jt over 24 hours from now. if you look at te headlines, it looks like media is already calling president obama the winner. even before he and mitt romney were on stage. joining me now is the democratic strategist, editor for the national review. i can't think of two people better to talk about this issue. i going to start with you. the first debate ialready

over his style, president obama, in his gop challenger needs to shine in the debate. what do you say? >> well, so much for the expectations game. the media doesn't pick winners, voters pick winners. that is why we have elections. they are smart enough to understand opinions and facts and all of that. they are really good at filtering it out. after all the early voting that is done, 9:00 o'clock on the west coast, it is the voters that have the last say and that is the way it should be. gerri: okay, rich, the public says that 61% of those polled by fox news says that the media wants obama to win. >> yes, i think it is right. in 2008, it was more of the country in love with president

obama. this time they are lukewarm with obama but they hate mitt romney. this is one of the few opportunities th mitt romney has two really comes through without the media filter being there. and since you have to be very aggressive towards the president, but he mostly has to try at the affirmative of the program. it is inevitably going to be a choice and people are not going to take them unless he steps it up. gerri: i want to talk to you about this. every pundit that i have talked to have something negative to say about romney. u name it, you have written that he has wondered, tell me w you see a. >> i think in this case, when it comes to a lot of us saying that the campaign should be more substantive, more forward-looking, it is really good advice and he should take it.

gerri: marianne, you know, this discussion about who is in for the president. when it talks about talking points in the polls. are they in favor of the president? here is a poll right here. in fact, 42% say yes, yes still to president obama. >> the two gold standard tools out there, "the wall street journal", fox news poll, a partisan pollster, democratic republican pollsters conduct them and obama is leading in both of them. he is hard to dispute trends. even the worst pool search can pick up trans. that is what you are seeing right now. gerri: it is an interesting point. the only people complaining about the polls right now are the republicans. does that tell you something about what is going on?

>> he is clearly behind. you are looking at the average of the national polls, two or three points behind. i do think, especially from some of these staples from the media organizations, they have partisan breakdowns that are totally out of whack. and produced results particularly their way to favorable to president obama and the press loves the storyline of this race is over. the usual cliché about the media -- in this case they hate the horserace and wanted to be overweight than they have reported again and again that it is over. this is one storyline playing into the analysis before the debate. this is not a make or break moment for mitt romney. he needs to do well. but this thing is still doable. neither candidate wants to brag about how good of a debater they are. gerri: in fact, they are lowering expectations across the

board. he says i'm an okay debater, mitt romney says i'm working on not losing. what do you make of tht? >> it's pretty funny. here is the reality. mitt romney has a herculean task in front of him. he is being asked to do in one month when he hasn't been able to do in one year, and that is to get enough voters to like him and trust him. anyone is going to see anything about these two guy tomorrow that they don't already believe or think about them. it is a reinforcement of her more than anything. gerri: it is interesting that chris christie, the governor in new jersey says, thursday morning from the world will be a different plac mitt romney is going to come across strong. you believe that? >> one guy didn't get the memo about lowering expectations. [laughter]

this is a big moment for mitt romney. i disagree that everything is baked in the cake. it is acceptable as an argument. anything could happen this month, right? >> the president is back in the high 40s, 47 and 48, he is still in the danger zone be one we will watch and see what happens. thank you both for coming on and talking with us tonight. now, we want to know what you think. here is her question. is the media bias in favor of president obama? logons gerriwillis.com. but on the right-hand side of the screen and i will share the results of the end of tonight's show. don't forget to watch the debate

hosted by neil cavuto starting at 8:00 p.m. eastern time. as president obama gets the fourth for his second term, here is our top five. >> guantánamo will be closed one year from now. gerri: those remarks were made after three days after inauguration. it is still open ended is not necessarily a bad thing, but it does point to a team of broken promises by the white house. here's number four. >> washington is broken. my whole campaign has been this way. gerri:

>> a lot more still to come in the hour. it seems the only good news can be found in the housing market tonight. more evidence for crisis may be over in the candidates focused on the economy this week. ahead of tomorrow's debate, why ahead of tomorrow's debate, why is obamacare seems they haven't been moving much lately. but things are starting to turn around because of business people like you.

and regions is here to help. with the experience and service to keep things rolling. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together.

gerri: there is one missing word from the bama campaign during this race. it is obamacare. but why is the president running from legislation that he desperately push for. with more on this, kimberly

stossel, welcome to the show. it is weird that what is supposed to be the signature legislation of the president is nowhere in his statement. when you make of that? >> i have heard you just mentioned, and it is true, that more than half of americans disapprove of the law. it's a thicker visions are even more unpopular, it seems like the individual mandate, things like taxes on medical devices, so what you see the white house doing, they don't want to talk about this. what you see them doing is very few provisions in the bill that remain somewhat popular out there. republicans have kind of let them get away with that. gerri: they are both strange bedfellows. they came together to ge

obamacare put in place. recently, you talked about aarp, but i don't know about you, but you ee them take over these bucolic streets, beautiful. but aarp is highly partisan and the obama debate. >> yes, that is what we have discovered now. the house energy and commerce committee put out a new e-mail that they have gone from subpoenas when they looked at how obamacare was put together. one of theore revealing assets is the degree to which aarp, which makes you think that it is out there. they were taking orders from the obamwhite house, taking pressure, they were out there doing a lot of work.

gerri: do all the people that run aarp come together and decide this is how it's going to be. >> one of the big things about the aarp -- this is not always the case of the board. it has i think that these eople knew this was not in the best interest of the seniors they represent and the board might not understand that. gerri: silent partners, like aarp, i also want to talk to you about women and how obama is really winning over women voters

incredible end their kind of performance, they have been highly critical of what he stands for when it comes to women's issues. >> i think one of the things that again, this is a missed opportunity for republicans. when you look at democrats, aa lot of what they offer is sort of an old-fashioned, 1970s agenda for women. about abortion, contraception, talking about the touch point issues that are supposed to make women feel aggrieved for equal pay and equal work. by the way, that a lot of women do care deeply about social issues. the idea that they get up and from the moment that they wake up in the morning until they go to bed at night, they are focused on abortion. most women, they don't have that luxury. they are working and having to pay the bills and balance family and work life. one of the things that republicans could be doing a lot better.

gerri: ann romney is trying to make it more personal. is that the way you appeal to women? >> i think the way to appeal to them is to talk to them. there is something that women may not appreciate. they want people to say to them, here is my specifics as to how it will help you and help tax reform is going to help you. here's how health care reform the mitt romney will help you specifically as a woman. a lot of these economic reformss o have very unique benefits fos n because of the role that they play in the economy. gerri: women, men, and family and all of the above. appreciate your time, kimberly. come back again soon. well, a victory in pennsylvania for democrats. a judge has blocd the state new election day.

democrats said the requirement was an attempt to defeat president obama and republicans claimed it was to prevent voter fraud. meanwhile,n all-important state of ohio, early voting kicked off today. people able to vote by mail or in person without having to give a reason. if you are fired up about this or any other issues, drop me an e-mail at gerri@foxbussiness.com. >> coming up on "the willis report", the economy at a crossroads with the fiscal cliff looming. but it delayed a housing crisis as well? our panelists duke it out next. and high frequency trading. we have an author that sheds light on what this could mean for investors. in more troue in the skies for american airlines. flying higher than ever. flying higher than ever. their ceos here to break it

a single ember that escapes from a wildfire can travel more than a mile. that single ember can ignite and destroy your home or even your community

you can't control where that ember will land only what happens when it does get fire adapted now at fireadapted.org gerri: there is no doubt that the fiscal cliff has people up in arms. right now, there are growing concerns about the fiscal cliff that will also end up derailing our nation struggling housing recovery. we have the director and researcher of analytics. thank you for coming on tonight. i'm going to start with your report. you say that it is the looming fiscal cliff that is the biggest danger to the housing market. how so?

>> the key is all about confidence. primarily confidence for the consumer. it is nosecret that the housing market has been on the rise r the last six years. a lot of folks will produce throw up their hands. it is messing with confidence and home buyers. gerri: do you agree that you are already starting to see your ve own numbers in the worst hit marketeer. it is a danger that people will stay away because they are depressed about the marketplace.

>> almost half of all home stereos are growing by 9%. there are big gains being made in some of the hardest hit markets today. if people lose confidence, they are less likely to buy a home and dampen and put downside risk to home prices. we also have to look at what i the real likelihood that we would actually go over the fiscal cliff. gerri: people in congress are slow learners. i want to show some numbers that i found very compelling from their capital. major metro markets and what is happening. what is going to happen. look at seattle, they are

expected to be up 10% over the next six months. phoenix, scottsdale, 10.7, vegas you just said to 9.5%, an francisco, this is, to me, such great news. to see these markets coming off their bottoms. is there anything besides the looming fiscal crisis here that might derail us? another recession that a lot of economists are talking about? >> several factors are involved. certainly the fiscal cliff is part of the story. if that happens and unemployment cree back up again, then we have more structural problems that go well beyond housing. certainly it will be addressed. you are right, those beings that we are seeing and projecting through the first quarter of 2013, they need to be taken into context. it is good news and certainly going up is better than going down. but thkey is that a lot of

these markets, phoenix, miami, tucson, las vegas, all of these markets were severely hit during the downturn. this double-digit growth that is projecting the prices. [talking over each other] gerri: i think it's a great thing. mark, let me turn to you for a second. you said that home prices are up its% year-over-year. you are looking for more gains. the question that keeps coming to mind is how fragile is this recovery. you would think given the particulars, that people would be all over this marketplace. it's not happening. is a fragile recovery? >> actually don't think that fragile. we are in equilibrium right where this weak spot is for the market. it rlly comes down to existing

homeowners making up the vast majority of homebuyers that is why we see. gerri: i wanted to pick up we really need more traditional buyers come back online. >> only once that happens strength of the recovery take off. gerri: alex an mark, great job and thank you for coming on

tonight. when we come back, a batch of mixed signals for wall street. stay with ♪

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gerri: the securities and exchange commission hosting a roundtable discussion over high frequency trading on capitol hilloday. in attendance were industry executives, and issues whether the markets have become an uneven playing field for small investors. joe is the author of the new book, how high frequency trading and predatory practices are restoring confidence in your portfolio. i'm glad to know that you're not on the middle on this, that you have actually taken a position. the former sec commissioner was

on our show last night and he said that he wasn't expecting much out of this roundtable. >> you know, unfortunately, i didn't get to see the beginning, but it wasn't much. it was more of a technology oriented roundtable. these issues have been going on for years. the only reason why the roundtable might come up is because of the industry saying, look, we are doing something. gerri: when they are saying the industry, they are talking about a kill switch. mary schapiro had this to say today. technology has evolved and when it doesn't work right, consequences can be severe. >> the markets are operating at high speeds. just to put it into context, it takes you 200 milliseconds to blink your eyes.

the problem is they could be anything going on in the market. a kill switch with only fix it after the fact. gerri: there really isn't a point. >> maybe it will prevent them from losing $200 million. you have to address the structural issues. gerri: for individual investors, it's not a disaster, but if the market crashes in the middle of the day, it raises the question of the markets being a safe place for individual investment. it is inreasingly obvious that individual investors are saying that it's not only 15% of americans that have trust in the stock market -- is this not an institution that we absolutely have to say.

>> a couple of them are actually public. they have a very competitive atmosphere. thirteen exchanges and over 50 job pools competing. gerri: i want to get you to respond to something that dennis kelleher said today. he had an interesting comment. >> that's not a glitch, that is a computer that has run amok, that they can't control and the consequences of which are going to be paid by everybody as investor confidence goes down. gerri: he is talking about the trading glitch at night. it's unacceptable. >> he's absolutely right. you have a situation where anybody can create this entity and ere could be legalities going on. but you need to address why they exist in the first place. because there is a stock market

change where they have supply and demand is penny jumping everybodyelse. they have access to high-speed fees, all of these hings -- but we don't fix the structure of the market, we will continue to have problems. >> i think it is important issue. individual investors are voting with their feet right now and getting out. thank you. meanwhile, it was a mixed day in the market. the dow sinking 32 points and the s&p just barely made it into green territory. the last few months, beenpretty positive if you missed it. my next guest is it is all thanks to the fed. could it all come crashing down. coming up, next is scott martin

-- oh, i thought you were in the next block. are you there? [laughter] oh, okay. my goodness. you know, i hope you were listening. were you listening to the high frequency trading conversations? i know you like these guys anything they should be able to do absolutely anything that they want to. >> if you are a long-term investor, you can't be sitting at home stuffing pennies. gone are these guys would be ameritrade commercialsls that trade the stocks in their living rooms. i'm the person who is worried because the market loses billions of dollars of value in a single morning. that is the person i am.

i am worried that it's not an even trading failed. >> if you are relly that person, at if the crash does happen, just look at this as you can do? buy more. if you look at that flash crash pattern and you bought that next friday and on the friday after that, the market went up. the crashes after the sale. the market was down 30%. gerri: i am a big long-term corporate person. but i want to capital markets to be sick. it seems like what we are doing ishoosing a group of traitors over capital markets. over the ability of companies in this country to raise capital. and i think that is ridiculous. >> i think it's a fair point. i think the run-up an important point about computers and the kill switch is. because those were things that were created by humans. unlike the president obama with it, yes, we did build those machines. we should probably.

gerri: is there anything else going on here? why are individual investors so nervous. >> if you adjust for inflation, people have less discretionary income. therefore, if you read the headlines, they are ve daunting. unfortunately, or i guess, fortunately for now, the ecb and the bank of japan, the ultraconservative bank of japan in this game, propping up these markets. >> it is a bubble and i think you are right about that. next time you come on, i will

not ignore you for 20 seconds. i will bring you right on and we will get right to a. >> i was alone with my thoughts and it happens a lot be one all right, still to come, american airlines tries to explain what causes all those feeds functiong up next these fellas used capital one venture miles

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gerri: let me just unpack this a a little bit. when easily that there is outrage at every turn on this story. to back up here, we found out this week that lockheed martin is telling us that there will be no budget cuts, that is defense

cuts coming. how does the obama administration have the authority to say sequestration is not going to happen? >> that is a very good question, and they do have the authority. but i will tell you that this does prove one thing. the administration will do anything to win this election. that is, they will do anything except effectively govern. we have had an opportunity for months now to avoid sequestration. the house of representatives has passed a bill to postpone sequestration and the senate has just ignored those efforts and done absolutely nothing. you have to ask yourself at the end of the day, here is what t labor department said. i want to get your response to it. this is about questions and requiring federal contracts

whose contracts may be reduced in the event of sequestration. the answer to this question is no. in fact, it would be inconsistent wh the purpose of the one. true or false, sir? >> well, it is very political. you are rigt. >> senator, do you think the labor department is overstepping its bounds here? >> i do. i think that there are real problems in this administration with its concept of the rule of law. for one thing, they are saying that they are going to approprie money to pay legal fees and indemnify the company. the power of the person from the last time i checked is the property of the congress. the house and senate basically what they are saying is ignore the law, do not extend warnings out and we will make you whole by taking money from the taxpayers and giving it to the

attorneys. that makes me woer about the administration's click here to the constitution and the rule of law. gerri: 's comments .htm said this is an implied threat. whether it is paying out services or legal threats. what do you ma of that? >> they should he offered a plan and see what the administration had to say about it. the administration came back and says, i will tell you why. the lawsuit will indemnify you for that. somehow, they will appropriate monday that the congress has not yet authorized. [talking over each other] gerri: as a taxpayer, having the administration promised my tax

dollars for something that congress is not authorizing -- it also defends these people who work for military contractors. >> this is true. gerri: there are 41 billion workers who work for lockheed martin. some 23,000 across the country. that is a lot of voters. an income you keep saying it is litical. let's dispel it out here. what you are saying is that the president is trying to drive us to make sure that these workers do not get layoff notices only days before the election. >> that is right, it's a blatant power play to carry the state of virginia. but, it is not as virginia. its 11,000 jobs lost. we built a lot of ships and aircraft in mississippi. a million jobs nationwide. sequestration is a disaster. with leadership and effective

government, it could've been avoided. that and the administration has come in plain blatant politics remap. gerri: certainly, we have a long way to go and this is a frightening scenario. we are really glad they came and talked to us. thank you for your time toda >> i appreciate the opportunity to. gerri: still to come, my "two cents more" on waste, fraud, and abuse in washington. and american airlines has an explanation for their

gerri: american airlines coming

gerri: in focus tonight,

american airlines and their seats. this is the third instance of turbulence shaking a row of seats from anthrax. joining me now, rick, i want to review what american airlines had to say moments ago about what happened with the seats. these grants were used on 47 of our 102 boeing 757 plans. what do you make of that? >> yeah, you know -- we have to look at it in context -- these

are not brand-new airplanes. it is a little fishy to me. again, there weren't to blame each other so it's hard to tell what's happening. for me, it's simple. leave on time, arrive on time, evidently, have my seats clampdown as well. [applause] relaunches the basic stuff, that is all i really care about. usually on the break, you said that i have had for quite? american airline flights? >> i have had four in the lst two weeks and none of them have come off without a hitch. the good news is the one that was canceled actuay got on another flight that was earlier than my previous one. they are doing their best to handle these particular issues.

gerri: they have had flights canceled, lots of delays, the pilots are complaining about a work slowdown -- as an individual, if i am booked for christmas or thanksgiving on american flight, what should i do? >> i wouldn't worry about it. i have tickets on american airlines for both those times. i'm not too worried. asking a couple weeks if i'm worried. you know, the funny thing about this is that several weeks ago a month ago, united is having all sorts of glitches with this reservation system. a lot of united playees have moved over to american for some consistency. now, there've been no consistency. delta is last on the list right

now. gerri: i am wondering what frequent buyers should do. these are what peoplewho are baked into the airline system needed to develop. >> if you want to fly nonstop somewhere, it hurts. it's not about staying with a particular airline, there are so few to pick from -- it is more like will i make a phone call or that is a thousand dollars out of the revenue stream of america. we haven't seen any sort of real evidence that people are looking away, but when "the wall street journal" comes out, they say don't book on american airlines for the next two weeks, they have aretty bad pr problem. gerri: thank you for coming on tonight. we will be right back with my "two cents more" and answer the question of the day. is the media bias in favor of is the media bias in favor of the president? [ male announcer ] at scottrade,

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gerri: just over a month before the election and now many are crying foul when it comes to media coverage saying there is an obvious bias in favor of the present. what you think, is the media biased? here's what you said, 98%aid yes, there is beauty 2% said no. finally, another example of waste fraud and abuse in washington. cording to the congressional research service, millionaires are collecting unemployment benefits. nearly400 of them, in fact. it is not just millionaires. 950,000 people earning six figures also took home benefits. welfare for the wealthy. getting rid of this mistake may only be a drop ithe bucket when it comes to trillion dollars deficit but every little bit counts.